@BusinessDaily

KRA settles Sh2.5 billion tax dispute with sugar importer

3 months ago, 21 Sep 13:43

By: Galgallo Fayo

Kenya Revenue Authority has agreed to release 40,000 metric tons sugar owned by Darasa Investment Ltd that is at the centre of a Sh2.5 billion dispute.

KRA in a statement revealed that it reached out of court settlement with Darasa Investment which will now clear the Sh2.5 billion duty and VAT arrears.

The tax was subject of a long running court battle, and Supreme Court in May stopped KRA from demanding the sh2.5 billion from the sugar importer.

Darasa Investment had contested the tax arguing that it brought it in during the tax waiver period granted last year and accused the taxman of discrimination.

The taxman further indicated that the firm is required to settle a Sh547,846,969 in ninety (90) days if waiver of interest and penalties is not granted as per the East African Community Customs Management Act.

The entry of the sugar into the country will be subject to further clearance from Kenya Bureau of Standards (KEBS), Port Health, Agriculture & Food Authority and the Radiation Board.

The agreement will lay to rest a bitter court battle.

In February, KRA lost the tax claim at the high court after Justice Eric Ogola ruled that Darasa Investment Ltd, was entitled to be cleared duty-free by the taxman and termed the decision by KRA to levy duty on it as unlawful.

The Judge ruled that he was satisfied that the sugar was loaded at a port in Brazil between May 12 and August 31, the period covered by tax waiver period, destined to Mombasa port as per the conditions set in a Gazette Notice.

But the decision was overturned by Appeal court prompting Darasa to move to Supreme Court.

KRA says it resorted to resolving the dispute through Alternative Dispute Resolution (ADR) as provided for in Article 159 (2)(c) of the Constitution, noting that so far the move has raised Sh8.3 Billion from 181 companies.


Read More


Category: business news economy opinion markets lifestyle corporate

Suggested

22 hours ago, 07:51
@BusinessDaily - By: Patrick Alushula
Marginalised counties demand Sh28.3bn from Treasury

Kenya’s poorest counties have teamed up to demand the release of Sh28.3 billion that the National Treasury has withheld over the years ...

Category: business corporate news
22 hours ago, 07:43
@BusinessDaily - By: Patrick Alushula
Lobby reads mischief in accountants transfers

ICPAK accuses govt of witch-hunt saying procurement and accounting officers have been denied access to their previous duties ...

Category: business news
1 day ago, 22:19
@DailyNation - By: Peter Changtoek
Summer flowers for small farmer

Thomas Sang grows flowers that he sells to a firm that exports them earning a tidy sum ...

Category: business news
1 day ago, 23:14
@TheStar - By: Abel Muhatia @muh ...
Kerosene and petrol prices slashed before Christmas

Poor households that largely depend on Kerosene for lighting and cooking will enjoy the fuel at a cheaper rate for the next one month following ERCs latest review.According to the review, the cost of ...

Category: topnews news business
1 day ago, 22:19
@DailyNation - By: Isaiah Esipisu
Only smart farming will overcome climate change: Experts

Scientists note that the use of technologies and innovations like solar irrigation, digital agriculture, climate-smart agriculture and climate-smart breeding, is the only way to tackle the negative ...

Category: business news
1 day ago, 22:34
@TheStar - By: Andrea Bohnstedt
Financing through CSR

A few days ago, president Uhuru Kenyatta said that he would require banks to emulate KCB Group’s corporate social responsibility (CSR) programme and set aside funds for youth empowerment programmes. K ...

Category: topnews news business

@BusinessDaily

KRA settles Sh2.5 billion tax dispute with sugar importer

3 months ago, 21 Sep 13:43

By: Galgallo Fayo

Kenya Revenue Authority has agreed to release 40,000 metric tons sugar owned by Darasa Investment Ltd that is at the centre of a Sh2.5 billion dispute.

KRA in a statement revealed that it reached out of court settlement with Darasa Investment which will now clear the Sh2.5 billion duty and VAT arrears.

The tax was subject of a long running court battle, and Supreme Court in May stopped KRA from demanding the sh2.5 billion from the sugar importer.

Darasa Investment had contested the tax arguing that it brought it in during the tax waiver period granted last year and accused the taxman of discrimination.

The taxman further indicated that the firm is required to settle a Sh547,846,969 in ninety (90) days if waiver of interest and penalties is not granted as per the East African Community Customs Management Act.

The entry of the sugar into the country will be subject to further clearance from Kenya Bureau of Standards (KEBS), Port Health, Agriculture & Food Authority and the Radiation Board.

The agreement will lay to rest a bitter court battle.

In February, KRA lost the tax claim at the high court after Justice Eric Ogola ruled that Darasa Investment Ltd, was entitled to be cleared duty-free by the taxman and termed the decision by KRA to levy duty on it as unlawful.

The Judge ruled that he was satisfied that the sugar was loaded at a port in Brazil between May 12 and August 31, the period covered by tax waiver period, destined to Mombasa port as per the conditions set in a Gazette Notice.

But the decision was overturned by Appeal court prompting Darasa to move to Supreme Court.

KRA says it resorted to resolving the dispute through Alternative Dispute Resolution (ADR) as provided for in Article 159 (2)(c) of the Constitution, noting that so far the move has raised Sh8.3 Billion from 181 companies.


Read More

Category: business news economy opinion markets lifestyle corporate

Suggested

22 hours ago, 07:51
@BusinessDaily - By: Patrick Alushula
Marginalised counties demand Sh28.3bn from Treasury

Kenya’s poorest counties have teamed up to demand the release of Sh28.3 billion that the National Treasury has withheld over the years ...

Category: business corporate news
22 hours ago, 07:43
@BusinessDaily - By: Patrick Alushula
Lobby reads mischief in accountants transfers

ICPAK accuses govt of witch-hunt saying procurement and accounting officers have been denied access to their previous duties ...

Category: business news
1 day ago, 22:19
@DailyNation - By: Peter Changtoek
Summer flowers for small farmer

Thomas Sang grows flowers that he sells to a firm that exports them earning a tidy sum ...

Category: business news
1 day ago, 23:14
@TheStar - By: Abel Muhatia @muh ...
Kerosene and petrol prices slashed before Christmas

Poor households that largely depend on Kerosene for lighting and cooking will enjoy the fuel at a cheaper rate for the next one month following ERCs latest review.According to the review, the cost of ...

Category: topnews news business
1 day ago, 22:19
@DailyNation - By: Isaiah Esipisu
Only smart farming will overcome climate change: Experts

Scientists note that the use of technologies and innovations like solar irrigation, digital agriculture, climate-smart agriculture and climate-smart breeding, is the only way to tackle the negative ...

Category: business news
1 day ago, 22:34
@TheStar - By: Andrea Bohnstedt
Financing through CSR

A few days ago, president Uhuru Kenyatta said that he would require banks to emulate KCB Group’s corporate social responsibility (CSR) programme and set aside funds for youth empowerment programmes. K ...

Category: topnews news business
Our App